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Currencies Trading Ideas & Charts

AUD/USD rises to the 0.7500 area after Federal Open Market Committee minutes

Minutes contain no noteworthy surprises.

According to the minutes, Fed officials believe the criteria of “substantial further progress” required to change monetary policy has not yet been satisfied. Several FOMC members stated that they expect the pace of asset purchases to slow down and those criteria would be met sooner than expected.

Following the minutes, the US dollar retreated across the board, wiping off the previous day’s gains. The DXY fell to the 92.50 level, turning negative. US yields are still hovering around daily lows. The 10-year note is currently trading at 1.31 percent, its lowest closing since February 18.

Short-term Outlook

With the price well below the 20-day simple moving average, the AUD/USD remains negative (SMA). The pressure will be relieved if the Aussie recovers over 0.7540, and it will rise above 0.7600/05. The 0.7560 area, where the 20 and 200-day SMAs intersect, will be a key milestone to watch.

The key support, on the other hand, is at 0.7455. A break below 0.7400 would pave the way for additional losses, with the initial target being around 0.7400.

(Source: FXSTREET)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies

When is the best time to buy Bitcoin? JPMorgan provides a metric to monitor.

How to find Bitcoin’s market cap

Divide the total Bitcoin’s market capitalisation by the total market capitalisation of all cryptocurrencies to find Bitcoin’s dominance. Bitcoin currently has a 44.7 percent market share, according to the indicator. By comparison, in April, it was about 60%.

There are two possibilities for the dominance to return to 50%: one, if Bitcoin’s price rises, increasing its market share; and two, if other coins see a large sell-off, thus pushing the cryptocurrency market cap down.

Comments on Bitcoin by Nikolaos Panigirtzoglou, JPMorgan

With a proportion of Bitcoin of 50% or more of the overall cryptocurrency market capitalisation, this is a good number. That, I believe, is another indicator to keep an eye on in order to determine whether or not the bear market is gone. Bitcoin’s low market share was a negative indicator, indicating a low level of interest in the currency. Bitcoin’s market share has climbed in over the last week, which is worth noting.

Comments on Crypto Markets by Avinash Shekhar, Co-CEO, ZebPay

Despite the latest price drop, crypto markets have seen tremendous gains over the prior 6-9 months. However, the market is still trading considerably above 2017’s all-time high pricing. This is a good indication that the market is still optimistic. We anticipate future enhancements to various blockchain networks and believe that this space will gain greater fundamental strength, resulting in long-term development.

Source:- Economic times

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies

The Australian dollar may suffer as a result of the RBA’s actions.

Analysts believe the RBA will not prolong its yield curve objective than April 2024, but the next phase of its quantitative easing programme is less definite. The third phase of QE may comprise $5 billion weekly bond purchases with an adjustable lever associated, allowing the RBA to reduce in reaction to economic developments without producing too much uncertainty, according to ANZ strategists and others.

In the lacking of a significant taper announcement, Commonwealth Bank predicts the dollar’s ongoing decline will continue. The Australian dollar has been under pressure in over the last week as a rebounding greenback has risen on expectations that the Federal Reserve will raise interest rates twice by 2023.

Despite commodities prices being higher and Australia earning its 41st consecutive trade surplus in May, and continuing on track to extend that streak in June, the fallout was enough to drive Australia’s dollar lower.

Expert’s predication on Australian dollar

Many experts predicted the Australian dollar would break beyond US80 in the following months due to these factors, but other reasons have already come into play, causing analysts to revise their expectations. This scenario, combined with Westpac’s projection that the RBA will raise interest rates in early 2023, prompted the bank to lower its Australian dollar end-of-year estimate from US82 to US80.

ANZ FX strategist John Bromhead Comments

Given that the resolution on the yield target is set for April 2024, we believe the devil will be in the details of the QE programme. We don’t believe there will be a reduction in volume, but the real test will be how transparent they are with the evaluation process and how frequently they conduct it.

Source:- afr

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

Despite India’s lowest coronavirus mortality since April, the rupee bears recover 75.50

Even as the death toll in India declines, market mood dwindles amid covid troubles

The official covid data for India, obtained from the Health Ministry early Monday, indicated a 39,796 daily increase in coronavirus infections, bringing the total to 30.59 million. The bulletin also cites 723 covid-related deaths the day before, the lowest number since April 2008, bringing the overall number of fatalities to 402,278.

Statements from Barclays and Nomura predicting an increase in the current budget deficit could also be fuelling the quotation (CAD). According to Nomura, the CAD will grow from 0.9 percent of GDP in FY 2021 to 1.5 percent of GDP in FY 2022. Barclays is aiming for a 1.1 percent CAD figure, which appears to be a tad bullish on Indian economics.

USD/INR pair has reversed Friday’s decline from late-April highs.

Despite Friday’s mixed US jobs figures, a negative attitude and uncertainty over the Fed’s next moves keep the US dollar bought versus key currencies. However, S&P 500 futures are down 0.15 percent, while markets in Asia-Pacific are down somewhat as of press time.

Moving on, a prolonged holidays in the United States and a light schedule elsewhere may hold the USD/INR near the mid-72.00s. Any unexpected benefits from India, on the other hand, should not be overlooked.

Despite the fact that the mid-April lows test USD/INR bulls near 74.50-55, also short-term sellers are less inclined to take risks entry until the price stays above the 10-DMA level of 74.32. Overall, the USD/INR is forming a bullish rounding bottom chart pattern on the daily chart, implying additional upward towards the yearly top near 75.65.

Source: https://www.fxstreet.com/

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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ipo IPO Watch

Tatva Chintan Pharma, Chemplast Sanmar Chem receives approval from the SEBI for IPOs

According to a Monday update with Sebi, Chemplast Sanmar and Tatva Chintan Pharma Chem acquired Sebi’s findings on July 2 and June 30, respectively. Any firm planning to conduct a public offering, such as an initial public offering (IPO), a follow-on public offering (FPO), or a rights issue must adhere to Sebi’s guidelines.

According to the draught papers, Chemplast Sanmar’s Rs 3,500 crore IPO includes a Rs 1,500 crore fresh issue of equity shares and a Rs 2,000 crore offer for sale. Sanmar Holdings Ltd and Sanmar Engineering Services Ltd are selling shares worth Rs 1,850 crore and Rs 150 crore, respectively, in the offer for sale.

About Chemplast Sanmar

Chemplast Sanmar is a prominent specialised chemicals company that specialises in speciality paste PVC (polyvinyl chloride) resin and bespoke manufacturing of raw ingredients and intermediates for the pharmaceutical, agrochemical, and fine chemicals industries. The net proceeds would be used to pay for the early redemption of the company’s non-convertible debentures (NCDs) to the tune of Rs 1,238.25 crore. The money will also be put to good use in the company.

About Tatva Chintan Pharma Chem

According to the draft red herring prospectus, Tatva Chintan Pharma Chem’s IPO consists of a fresh issue of equity shares worth Rs 225 crore and an offer of sale by current founders and shareholders for Rs 225 crore .The proceeds from the new offer will be utilised to pay capital expenditures for the company’s Dahej manufacturing facility, as well as upgrades to its R&D facility in Vadodara and other general business reasons.

Source; Economic times

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Property

Initiating Coverage of Pexa with a AUD 13.20 Fair Value Estimate and a Wide Moat Rating

Close up young business woman holding house model on hands with free copy space. Real estate loan banking concept. Building and construction.

Pexa’s competitive advantages will be undermined somewhat following the introduction of interoperability in 2023. However, this will only impact its network effect, with customer switching costs likely to remain robust.

In turn, Pexa’s economic moat should enable relatively high investment returns and profit margins and the asset-light business model should enable strong cash generation and ultimately sustainable franked dividends.

Despite Pexa’s attractive attributes, the shares look expensive. Our base-case equity value of AUD 2.2 billion, or AUD 13.20 per share is 23% below the market price of AUD 17.15.

The strong market price is due to a combination of Pexa’s highly defensive annuity-style earnings coupled with record low interest rates, investor excitement about Pexa’s growth options, and recent real estate market strength. Link Group (ASX:LNK), which owns 43% of Pexa, offers cheaper exposure to Pexa.

Company Profile

Pexa is the first electronic conveyancing platform for real estate in Australia and derives revenues by charging fees to facilitate real estate transactions over its network. The emergence of electronic conveyancing creates a number of efficiencies and replaces the historical labour-intensive process which was vulnerable to errors. Having achieved dominance of the Australian electronic conveyancing market, Pexa is looking to expand overseas and replicate its success in international locations. The company was founded in 2010 by a group of Australian state governments with Australia’s “big four” banks beginning to transact on the platform shortly after.

(Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

5 Cryptos Outperformed Bitcoin in FY21, delivering more than 2500%

Euro currency money banknotes background. Payment and cash concept. Announced cancellation of five hundred euro banknotes. Top view.

While Bitcoin returned a remarkable 300 percent to its investors last year, it pales in comparison to the returns from the following cryptocurrencies.

Theta (CRYPTO: THETA)

Theta token is the first cryptocurrency on the list to outperform Bitcoin in terms of returns. This is a ‘governance’ token, which means that its holders have a say in the project’s development. Theta’s creators want to shake up the traditional content delivery techniques.

As advisors, the initiative has Steve Chen, co-founder of Youtube, and Justin Kan, co-founder of Twitch. During the financial year, Theta grew by 2745 percent, confirming its position as the 20th largest cryptocurrency by market capitalization, at $8.17 billion. At the moment, the token is worth $8.16.

Solana (CRYPTO: SOL)

This concept was first envisioned in 2017 and was launched earlier this year by The Solana Foundation, a Geneva-based company. Solana’s proof-of-history consensus is a crucial and appealing feature, as it allows for better protocol scalability.

Solana can process 50,000 transactions per second, according to the project’s website. During FY21, the Solana token soared 3,706 percent to $47.32 per SOL. Over the same time span, this is more than ten times the return on Bitcoin.

Theta Fuel (CRYPTO: TFUEL)

The second native token associated with the Theta video streaming project is Theta Fuel. There are 5.23 million TFUEL tokens in circulation right now. As more TFUEL is generated as ‘staking rewards,’ this amount rises.

During FY21, the value of Theta Fuel increased by 4,510 percent. An tremendous increase that far outweighs Bitcoin’s. This cryptocurrency has a market capitalization of $2.54 billion.

Dogecoin (CRYPTO: DOGE)

During the previous financial year, Dogecoin most certainly exceeded all of its investors’ expectations. Elon Musk, the CEO of Tesla Inc, boosted the dog meme-inspired cryptocurrency with a series of tweets.

The possibility of it being adopted by the electric vehicle industry spread like wildfire. Despite the fact that the frenzy has subsided, dogecoin continues to produce incredible gains. Dogecoin increased by 5,095 percent in the previous fiscal year, nearly 52 times. The cryptocurrency is now the sixth most valuable in the world.

Polygon (CRYPTO: MATIC)

Polygon (formerly known as MATIC) is an Indian blockchain scalability platform called ‘the Ethereum’s Internet of Blockchains’. Polygon states it can offer up to 65,000 transactions per second with confirmation times of less than 2 seconds.

More than 350 decentralised applications have been built on Polygon thanks to a mix of extremely low fees and additional features. In FY21, the Polygon price soared 6,760 percent due to increased use of the network and its token. That result puts Bitcoin’s 300 percent performance to disgrace.

(Source: The Motley Fool)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Dividend Stocks

The Strategic review of Tabcrop Favours a Demerger Rather Than a Sale

Further, Tabcorp’s retail exclusivity has little value when punters can place bets with competitors from their smart phones while inside TAB-exclusive venues, such as pubs. We currently model Tabcorp as a combined entity with the demerger earmarked for completion by June 2022, and make no changes to our AUD 3.40 fair value estimate and no-moat rating.

With long-dated licences across all Australian states other than Western Australia, the lottery business enjoys an monopolistic position in its addressable market, and this is bolstered by the scale of its national prize pool. Optimistic about the lottery segment’s opportunity to better realise these competitive advantages and support a strong dividend payout ratio once unshackled from the beleaguered wagering business–the highly cash-generative lotteries business has historically acted as a funding source for capital-intensive wagering investment.

While signaling it remains opens to improved bids, Tabcorp has baulked at the myriad conditions and hurdles to get the various proposals lobbed for its wagering and media business over the line–notably approval from state gaming regulators and racing industry partners.

Company Profile

Tabcorp operates through principally three segments: wagering and media, lotteries and keno, and gaming services. The firm conducts wagering activities under the TAB brand both online and physically in every Australian state and territory other than Western Australia, reaching 90% of the population through a network of retail venues. Tabcorp also operates regulated lotteries in every Australian state except Western Australia. In addition, Tabcorp Gaming Solutions provides services to electronic gaming machine venues.

(Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Global stocks

Positive Position for ABF in Q3 with Primark’s Share Gains In U.K. Reflecting Strength of Brand

Primark achieved volume and value share improvements on a two-year basis during the seven-week period following reopening in the overall U.K. clothing market, which includes online sales, a reflection of its excellent brand and execution, despite not offering a transactional online channel.

We increase our fair value estimate to GBX 2,560 per share from GBX 2,350 to account for the time value of money and stronger sales growth rebound in Primark as reopening gradually resumes. Our discounted cash flow-derived fair value estimate is slightly lower than our sum-of-the-parts valuation at GBX 2,620 per share, with Primark accounting or about 50% of the group’s valuation. Although uncertainty around restrictions has been significantly reduced in recent weeks, the stock already trades in 3-star territory, and we advise investors to wait for a better entry point.

Company Profile

Associated British Foods is a diversified international retail, food, and ingredients group with 130,000 employees and operations in 50 countries across Europe, southern Africa, the Americas, Asia, and Australia. The group sells branded grocery products, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the popular Primark clothing retail chain. It also supplies ingredients like bakers’ yeast, enzymes, lipids, and cereal specialties. Some 40% of sales are in the U.K., and Primark generates more than half of the firm’s operating profit.

 (Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
IPO Watch

India’s Paytm Plans $2.3 Billion of the Biggest IPO

The $2.3 billion IPO of the Paytm in India will be the leading and expected to be the biggest public listing in India in terms of dollar after the state-run miner coal India in 2010 and reliance power in 2008.

The timing is ideal for an IPO because competition is heating up and Paytm’s popularity is waning; the IPO could be the difference in their ability to compete.

Paytm’s Offer for Sale

Paytm extended an offer for sale (OFS) to its employees earlier this month, allowing them to sell all or portion of their equity shares in the IPO or keep them. The IPO plans were approved by Paytm’s board “in principle,” and the preliminary prospectus is anticipated to be filed in July.

According to Indian regulations, 10% of shares must be floated within two years, and 25% must be floated within five years. Paytm’s stock must be a combination of new and existing stock.

Its investors include Alibaba of China and Softbank of Japan and Paytm is seeking shareholder approval at the EGM to offer up to 120 billion rupees in new share issue and maintain an alternative to retain up to 1% of an over-subscription.

For the IPO, Paytm has enlisted the help of JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi, and HDFC Bank.

Company Profile

Paytm is one of the biggest company providing financial services that offers full-stack payments & financial solutions to consumers, offline merchants and online platforms. One97 Communications is the parent of Paytm and is established by Vijay Shekhar Sharma. It’s headquarter is in Noida, Uttar Pradesh.

(Source: THE ECONOMIC TIMES and PYMNTS.com)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.